I would decompose that in to a value trade + a blackmail.
The default for me would be to take the action that gives me 1 utility. But you can offer me a trade where you give me something better in return for me not taking that action. This would be a value trade.
Lets now take me agreeing to your proposition as the default. If I then choose to threaten to call the deal off, unless you pay me a even higher amount, than this is blackmail.
I don’t think that these parts (the value trade and the blackmail) should be viewed as sequential. I wrote it that way for illustrative purposes. However, I do think that any value trade has a Game of Chicken component, where each player can threaten to call of the trade if they don’t get the more favorable deal.
I would decompose that in to a value trade + a blackmail.
The default for me would be to take the action that gives me 1 utility. But you can offer me a trade where you give me something better in return for me not taking that action. This would be a value trade.
Lets now take me agreeing to your proposition as the default. If I then choose to threaten to call the deal off, unless you pay me a even higher amount, than this is blackmail.
I don’t think that these parts (the value trade and the blackmail) should be viewed as sequential. I wrote it that way for illustrative purposes. However, I do think that any value trade has a Game of Chicken component, where each player can threaten to call of the trade if they don’t get the more favorable deal.